Houston - (June 16, 2025) - The housing market is showing signs of balance, with home sales rising, inventory increasing, and mortgage rates holding steady. After years of tight inventory and rapid price growth, this summer marks a shift especially for homebuyers looking for more negotiating power. If you’re wondering whether now is a good time to buy, sell, rent, or invest in Greater Houston real estate, this month’s market data has some answers.
Sales of single-family homes in Greater Houston rose 8% year-over-year, while total dollar volume jumped by 13%. Even more interesting? The median price stayed flat at $350,000, giving buyers more options without additional financial pressure. Meanwhile, the luxury home market in Houston surged with a 27% year-over-year increase in $1M+ home sales.
Inventory is growing, too. Active listings climbed sharply, pushing months of inventory up to 4.7 giving buyers more choice and possibly more leverage. Mortgage interest rates averaged 6.82% in June, slightly lower than the previous month but still well above historic lows.
The Houston townhome and condo market is showing signs of a shift, with slower sales, falling prices, and growing inventory. Meanwhile, the rental market in Houston continues its slow, steady climb with a 1% increase in rent prices and a slight rise in leasing activity.
Whether you’re a first-time homebuyer, a seller trying to time the market, or an investor watching rental trends, this report breaks down what’s happening right now and what it means for you.
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Key Highlights
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Single-family home sales rose 8% year-over-year
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Median price held steady at $350,000
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Inventory jumped 21%, reaching a 4.7-month supply
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Luxury market ($1M+) surged 27% in activity
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Mortgage rates averaged 6.82% in June
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Townhome/condo market slowed slightly
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Rents climbed modestly, up 1%
Looking to make your next move? Check out this Step-By-Step Buyer's Guide or browse Houston Neighborhoods
Single-Family Homes Update
The Houston single-family housing market remained resilient in June 2025. Sales were up 8% compared to the same month last year, totaling nearly 7,800 closings. That's a strong number, especially given the interest rate environment. Even with rates in the high 6s, motivated buyers are staying in the market—and sellers who price strategically are getting results.
The median home price held flat at $350,000, which is noteworthy. After several years of rapid appreciation, Houston home values appear to be stabilizing. The average price, however, rose 4% to $460,155. That’s likely due to increased activity in the higher-end price brackets (see next section).
Inventory climbed to a 4.7-month supply—a 21% increase year-over-year. That’s the highest supply level we’ve seen in several years, and it suggests the market is trending toward balance. Homes are also taking longer to sell, with average days on market increasing from 63 to 74. For buyers, this can translate into more room to negotiate on price or repairs.
Sellers, meanwhile, need to position their listings strategically. Clean presentation, competitive pricing, and marketing that targets the right buyers make a big difference. Learn how to prepare your property with this downloadable Home Preparation Checklist.
Single-Family Sales by Price Segment
Luxury buyers came out strong this summer. Sales of homes priced at $1 million and up jumped a dramatic 27% compared to last June. That's the biggest year-over-year gain in any segment, and it reflects renewed confidence in high-end housing across communities like River Oaks, Tanglewood, and parts of West University.
The $500K–$999K bracket also showed strong momentum, with sales up 11%. This range is popular among move-up buyers, especially those upgrading from starter homes in areas like Cypress, Spring Branch, or Sugar Land.
The affordable housing segments remained flat. Sales of homes priced $150K–$249K were unchanged, and properties under $149K increased just 6%. This continues a trend we’ve seen all year affordable inventory remains scarce, particularly inside the Beltway. Many first-time buyers are either competing for limited homes or considering townhomes or condos instead.
Thinking of buying but unsure what price point fits your needs? Check out this article: How Much House Can I Afford in Houston?
Townhouse / Condominium Update
While sales volume rose slightly for condos and townhomes, the overall picture in this sector is more sluggish. Median and average sale prices both declined, while inventory rose sharply and properties are taking nearly a month longer to sell than they did a year ago.
The average days on market jumped to 87 days. That’s a significant increase and indicates that buyers in this segment are moving cautiously—likely comparing units, looking for move-in ready options, or leveraging the higher inventory to wait for price drops.
If you’re a seller in the condo or townhome market, your pricing strategy is everything. It’s essential to work with a real estate agent who knows how to position your listing competitively. You can also boost appeal with simple renovations that add value.
Buyers, on the other hand, have an opportunity here. With prices softening and inventory climbing, you may find a better deal than you could on a single-family home in the same area—especially in Midtown, the Museum District, or the Galleria/Uptown.
Mortgage Interest Rates Trend
Mortgage rates have stayed relatively steady for most of 2025. June ended with an average 30-year fixed rate of 6.82%, up slightly from May’s 6.89%. This keeps borrowing power moderate—neither too restrictive nor especially favorable.
If you’re buying your first home or planning to refinance, it's essential to shop lenders, compare APRs, and get pre-approved. Rates vary by borrower profile, loan type, and down payment. Even small differences can impact your monthly payment and long-term cost.
Check your numbers using this mortgage calculator, or read this guide to buying a home in a high-interest market.
Economists predict rates will likely hover in this range through fall, unless inflation or labor market trends shift significantly.
How to Lower Your Mortgage Rate or Monthly Payment
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Rental Market Update
Houston’s rental market continues to show slow, steady growth. Lease volume is up 4%, and prices increased by just 1%. Average rents now sit at $2,287 per month.
However, rental listings are taking longer to lease—49 days on average, up from 44 last June. That may reflect either increased inventory or renters taking more time to shop across neighborhoods.
If you're a property investor, the rental market remains stable but not surging. Owners should focus on strong tenant retention and competitive amenities. For prospective tenants, this could be a good time to negotiate lease terms or look for move-in specials, especially in new apartment communities.
Not sure if you should rent or buy? Read this comparison: Should I Rent or Buy in Houston Right Now?
Industry News
1. TMC3 Innovation District Expands
The second phase of TMC3 Houston's massive life sciences innovation hub—is now open. The new additions include expanded research labs and private-sector medical technology companies, which are expected to bring thousands of jobs to the Texas Medical Center. This could drive up housing demand in nearby neighborhoods like Museum District, Braeswood, and Southgate.
2. Fort Bend Infrastructure Bond Promises Growth
A recently passed $712M infrastructure bond in Fort Bend County will fund road widening, park upgrades, and drainage improvements. This sets the stage for continued residential and commercial development in areas like Fulshear, Richmond, and Rosenberg.
3. ExxonMobil Repositions Campus
ExxonMobil is reimagining its Springwoods Village campus, opening part of it to mixed-use commercial development. This could attract new amenities, office users, and multifamily housing, making Spring and The Woodlands even more attractive to young professionals and families.
Predictions For The Rest Of Summer 2025
Looking ahead to the second half of 2025, here’s what we may see:
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Inventory will remain elevated, giving buyers more leverage
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Home prices may stay stable or soften slightly, especially in the condo/townhome sector
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Luxury home demand will remain strong, driven by out-of-state and local move-up buyers
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Mortgage rates are likely to hover between 6.7% and 7.0%, barring any major Fed decisions
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Rental prices will see moderate growth, especially near job centers and new developments
If you're buying, this could be one of the best windows to find a home with less competition. If you're selling, pricing it right from day one is key. Let’s talk about your specific goals and come up with a strategy.
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